Having a baby is one of the most exciting times in your life. It also happens to be one of the most expensive. When you have a baby, there are so many things you can’t prepare for. One area you can concentrate your efforts on, however, is your finances. Get your budget in order and you’ll feel more in control once your baby arrives.
The costs of having a baby
The cost of having a baby can quickly add up – see this list of big ticket items and unexpected expenses for a breakdown of some of these costs. Upfront costs include:
- Equipment, such as prams, strollers, baby baths and change tables
- Safety items like baby proofing and car seats
- Clothing – both maternity and baby
- Cot and bedding, including a mattress, mattress protector, sheets and blankets
- Toys.
The best thing you can do for your finances is to save for these costs.
Saving for having a baby
Every couple is different, but one thing they all have in common is that they need to save before having a baby. Ways you can do this include:
1. Cut down on costs
Take a red pen to your household budget and look for ways to cut expenses. For each item, decide if it’s a “need” or a “want”. For the time being, you may need to commit to removing all “wants” from your spending. This means saying no to your daily visit to the local juice bar, to concerts and sporting events, and to eating out at fancy restaurants.
2. Boost your income
There are lots of ways to boost your income ahead of trying for a baby. The earlier you do this, the better, as once you’re pregnant you may not have the energy to take on extra work. You can boost your income by selling what you no longer need or by working extra hours. You can also answer surveys that pay or become a virtual assistant.
3. Open a seperate account
Opening an account that’s specifically reserved for saving for your new baby is a great way to monitor how your savings are coming along. It’s also a great way to stop your savings being spent on something else. Ideally you want to set up a direct deposit that sends money into this savings account every week – even $5 a week can make a big difference!
4. Pay off high-interest credit cards
As you prepare for your baby, make a conscious effort to pay off any credit card debt. You can do this by applying the snowball effect to multiple cards, or by switching to a card with a lower interest rate. You might also like to apply for a personal loan or cash advancement with SRG Finance, which can consolidate debt into one easy payment.
5. Talk to your mortgage holder
Many home loans offer you the chance the make lower or no repayments for 6-12 months while you prepare for a baby and take parental leave. Ask your lender if you have this option. Interest is still added to the loan during this time and conditions apply, but it could be worth making a call.
6. Shop early
Shopping might not sound like saving, but done right it can add a lot to your final budget. Once you’re past the 12-week mark, start shopping the sales. But only buy what you know is essential – step away from unnecessary toys, gadgets and costly things your baby will quickly outgrow. Also consider shopping local garage sales and markets, or online via sites like Gumtree.
If you’re hoping your baby shower will cover most items, make a wish list or baby registry for friends and family. This allows them the opportunity to save too, giving them plenty of time to shop sale items. Because no one likes shopping for a last-minute gift!
7. Get creative
DIY projects take time, but they save cash and add lots of personal details. A nursery filled with items you made yourself is truly special. While you’re on the creative train, get cooking in the kitchen. Making low-cost, healthy, home-cooked meals you can freeze will save you reaching for expensive convenience foods and the takeaway menu on afternoons when your baby is fussy.
Need help with your budget?
Left it too late to save and need financial help for purchasing essential baby items? A personal loan from SRG Finance can get you out of a sticky situation to ensure the best start to life for your little one. Our same-day personal loans offer up to $3,000 that can be paid back over an easy 3 – 12 month period. Apply today.
